If you buy or live on a block of land that has multiple residents then it is likely that an owners corporation exists to manage the shared land or property among the owners. Owners corporations can exist to manage large apartment complexes or blocks of land that have three homes on them.

Owners Corporations (OC) that only manage a handful of properties and minimal communal land may be run by the owners. Larger blocks with multiple owners and lots of shared land or areas will usually engage a professional owners corporation manager to handle the administration of the OC.

The owners corporation is responsible for a variety of tasks, in particular managing common property. The common property includes areas such as shared gardens, walls, hallways, driveways, stairwells and lifts, fences and foyers. According to the Owners Corporations Act 2006, it is up to the owners corporation to repair, maintain, manage and administer such areas.

Owners Corporation manage more than just common property

Aside from the common property, the owners corporation also needs to repair and maintain services and fixtures as well as take out and keep up-to-date with the required insurance. What’s more, it’s for the OC to raise fees from lot owners to cover necessary financial obligations and they are also to prepare financial statements and keep track of financial records.

According to the plan of subdivision, plots of land in certain instances can be sold separately. These are usually referred to as “lots” and owners of such lots automatically become members of the owners corporation for that particular subdivision.

The OC should be able to provide owners corporation’s certificates when called on to do so and keep an owners corporation register. It’s also for the committee to establish a grievance procedure.

How much does it cost to run an OC?

Owners corporations tend to vary when it comes to which funds are collected in the OC’s account. Most corporations operate on a tiny margin over and above the usual annual operating costs. If you have simple owners corporation that just looks after the common driveway and some common land then the cost may be very low. If you live in a building with lifts and a pool then the costs will be higher.

A good Owners Corporation will plan ahead and save funds for major works like painting, paving, fencing and guttering.

Should it happen that a cost occurs that has not been budgeted for and there aren’t sufficient funds in the OC’s account, the normal practise is to set up a special levy that goes towards particular projects.

In a new multi-unit property development the developer will often establish the Owners Corporation and then it is up to the owners to maintain it.

A new series of short videos will help property buyers boost their confidence through a greater understanding of the essentials of what is involved with buying property off the plan.

The series called the Simple Guide to Buying Property Off the Plan will be a useful resource for people who want to understand more about this way of purchasing property.

If you watch these videos you will have a great understanding of what it means to buy property off the plan and how you can get a jump start on other property buyers.

The series covers:

1. What is buying property off the plan?
2. Some of the risks in buying property off the plan
3. The four simple steps to buying property off the plan
4. Financial considerations and deposits
5. Buying in a multi-unit development and inclusions lists
6. How to make stamp duty savings
7. Understanding owners corporations.

You can also review a report copy of the Simple Guide to Buying Property Off the Plan and the helpful Off the Plan Checklist to ensure you consider all the key points before signing a contract of sale.

Have you successfully bought property off the plan before, let us know by leaving a comment below.

Smart property buyers and investors who understand the value of buying property off the plan are getting the jump on other buyers. To help people looking to buy property off the plan Fast Love Homes has a simple checklist to ensure you cover off all the key considerations before you sign the contract of sale.

Buying off the plan means entering into a contract with a developer to buy a property before the completion of construction. Since there
is no physical property to inspect or see, you view the design, building plans and pictures to get an idea about what the property will look like on completion.

One of the biggest advantages of buying a new home off the plan is that you will be the first owner of the property and get a brand new dwelling built just for you.

Follow the checklist below to ensure you cover all the key points before signing a contract of sale.

1. Finance – Work out your budget and/or what you are able to borrow. Confirm with your lender about how they treat off the plan sales.
2. Inclusions – Ask for a clear list of all fixtures and fittings, kitchen appliances, light fittings, and carpets.
3. Contract details – Confirm the details that will be included in your contract. Find out if there are penalties for withdrawing from the contract. Review the contract in detail for clauses about commencement and information on your right to re-sell the property. Get the contract checked by your legal adviser.
4. Builder/ developer /architect history – find out about the team doing the development so you can be confident they will deliver everything promised.
5. Local market research – Investigate sales of similar properties in the local area to make sure you are paying fair market value.
6. Deposit details – Be clear on what amount your deposit will be and what form it will take (cash, Bank Guarantee, Deposit Bond etc)
7. Legal advice – Consult with a solicitor or conveyancer to closely check the terms of the contract to make sure your rights are protected before you sign the contract.
8. Stamp duty and other costs – Make sure you work out all the costs involved with the purchase including stamp duty and other ongoing costs like Owners Corporation fees.

You can always discuss your expectations with the sales agent or developer to ensure you are clear about what you are buying. Make sure there is mutual agreement with the developer on some or all of your expectations and have them written into the contract. This will help avoid disagreement between both parties at the time of completion. Remember, if it is not in the contract it is unlikely you will get it included in the finished property.

With a little understanding, buying property off the plan can be a way of securing a good quality home at a fair market price, and then influencing how it will be finished so it suits your style and needs.

You can grab a full copy of the Simple Guide to Buying Property Off the Plan from our website. Or watch the Guide to Off the Plan video series.

Owners corporations have the task of managing the common property of a residential or mixed-use property development.

The owners corporation is responsible for a variety of tasks, in particular common property. The common property includes areas such as communal gardens, walls, passages, driveways, stairwells and lifts, fences and foyers. According to the Owners Corporations Act 2006, it is up to the owners corporation to repair, maintain, manage and administer such areas.

According to the plan of subdivision, plots of land in certain instances can be sold separately. These are usually referred to as “lots” and owners of such lots automatically become members of the owners corporation for that particular subdivision.

Further responsibilities of the Owners Corporation

Aside from the common property, the owners corporation also needs to repair and maintain services and fixtures as well as take out and keep up-to-date with the required insurance. What’s more, it’s for the OC to raise fees from lot owners to cover necessary financial obligations and they are also to prepare financial statements and keep track of financial records.

The OC should be able to provide owners corporation’s certificates when called on to do so and keep an owners corporation register. It’s also for the committee to establish a grievance procedure.

How much does it cost to run an OC?

Owners corporations tend to vary when it comes to which funds are collected in the OC’s account. Most corporations operate on a tiny margin over and above the usual annual operating costs. But there are those who plan ahead and save funds for major works like painting, paving, fencing and guttering.

Should it happen that a cost occurs that has not been budgeted for and there aren’t sufficient funds in the OC’s account, the normal practise is to set up a special levy that goes towards particular projects.

In a new multi-unit property development the developer will often establish the Owners Corporation and then it is up to the owners to maintain it.